It has been complained off by Blockfi that it had received a flood of new sign-ups. But the majority of them are bogus and fake, told Blockfi.
It is a rather unusual type of assault being carried out on the leading crypto company, BlockFi. The company’s officials told that it was on 7th March (Sunday), 2021 when it started to receive multiple account sign-up requests. The company noted that the names of these account sign-ups were abusive and vulgar in nature. Several of these requests were consisting of racial remarks and a language that is not warranted in a civilized society, told BlockFi’s officials.
BlockFi claimed that the incident was a well-designed attempt executed by spammers and scammers. At least a thousand different email ids were used to send sign-up requests. Interestingly, the person behind sending fake sign-up requests managed to get register most of the accounts. However, it was later on identified by the BlockFi team that the accounts are suspicious.
The team also found out that at least half of the email ids used by the perpetrator were legit. While the rest of the email ids were non-existent or bogus. Upon notice of the suspicious activity, as an interim measure, BlockFi suspended new account sign-up requests. It was then told to customers and the public that sign-up services will remain suspended until further notice. The reason was told to be some technical issues that the BlockFi team was trying to resolve.
However, within the hours of suspension, no trading or exchange was suspended. The existing account holders were allowed to access their trading accounts plus engage in trading activities. The only restriction was imposed on the new sign-ups.
The incident led BlockFi’s CEO, Zac Prince to issue in person an official statement. In his statement, Prince informed that the present incident was in fact an attempt to malign BlockFi’s name and slander its reputation. He informed that the perpetrator was able to get through at least 500 emails. However, when BlockFi noted that the email messages contained vulgar and immoral language, the rest of the emails were blocked immediately. He thanked his team for identifying the possible attack and appreciated them for getting rid of the problem soon.
It was further claimed by Prince that neither any data nor any digital assets were reported stolen during the incident.
Last year BlockFi was subjected to a hack attack in which the hackers stole the data belonging to BlockFi’s customers. Thereafter, the investigation revealed that the security breach was done because of the mistake of BlockFi’s employee. The incident was remembered in BlockFi’s history as “SIM Swap Attack” but luckily no monetary loss was caused then.
Meanwhile, BlockFi was contacted by several media channels to give further details. But the company’s officials refused to give any comments until instructed by the higher-ups.